Inflation rates in the US have recently been at their highest level in decades. Imagine your local Congressman came to you for advice. If lower inflation is her only goal, what is a specific Fiscal Policy that you would recommend? Note: you must be specific name the fiscal policy tool that you would use and how you would change it (increase or decrease or raise or lower or buy or sell - whatever is relevant to the tool you're talking about). It's not enough to say "expansionary fiscal policy" or "contractionary fiscal policy." Feel free to review the sections of the text on expansionary and contractionary.fiscal policy to review the specific types of policies that fiscal policy includes.

Inflation rates in the US have recently been at their highest level in decades. Imagine your local Congressman came to you for advice. If lower inflation is her only goal, what is a specific Fiscal Policy that you would recommend? Note: you must be specific name the fiscal policy tool that you would use and how you would change it (increase or decrease or raise or lower or buy or sell - whatever is relevant to the tool you're talking about). It's not enough to say "expansionary fiscal policy" or "contractionary fiscal policy." Feel free to review the sections of the text on expansionary and contractionary.fiscal policy to review the specific types of policies that fiscal policy includes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Please help
Suppose the economy begins at full employment. Label this starting point as point "1." Then, suppose that an upcoming political election causes anxiety among consumers and consumption falls. Show the effects on your graph and label the new equilibrium point "2." Lastly, our government wants the economy to return to full-employment as quickly as possible. Should it intervene? If so, show the impact of successful fiscal policy on your graph. Label this new equilibrium point "3."
Summarize MMT in one sentence. Why should federal debt be thought of differently than household debt? If fiscal budgets don’t need to balance, what should we be trying to balance in an economy? Explain how a government deficit is society’s surplus. If we don’t care about the size of the “deficit”, then is there NO limit on government spending? How does MMT advise that the above problem be handled?
Hello, I would like help with this assignment Thank you Fiscal Policy Assume the economy is in stagflation where Y<Y* and P>P*. Demonstrate this graphically and explain. Assume the US Government, wants to decrease its deficit to do so they decide to increase taxes. Demonstrate and explain the effects of this policy on the economy. Does this make the economy stronger or weaker, explain? After part b. the government elects you as the new economic advisor, what policy would you recommend and why? What options would your present to the government? Assume your recommendation is accepted, now demonstrate and explain the effects on the economy. Demonstrate and explain the effects of your policy recommendation on the deficit and debt. Explain when it is a good time in the business cycle to increase taxes.
"There have been times when the federal government has kept pumping fiscal stimulus into the economy when it was already growing vigorously and did not need the boost. The result was ......" Complete this clipping. Group of answer choices higher inflation. higher taxes. higher unemployment. more discouraged workers.
Suppose the economy begins at full employment. Label this starting point as point "1." Then, suppose that a long strike by coal miners reduces the coal supply and increases the price of coal. Show the effects on your graph and label the new equilibrium point "2." Lastly, suppose our government wants the economy to return to full-employment as quickly as possible. Should the government intervene? If so, show the impact of successful fiscal policy on your graph. Label this new equilibrium point "3."
Given all the complications that can result with fiscal policy, is fiscal policy still considered an effective policy tool for stabilizing business cycle fluctuations? - While some economists believe it is best not to engage in fiscal policy at all and instead focus on monetary policy, most economists believe that fiscal policy has a place in stabilization policy. Currently, most economists believe that ( fiscal, monetary ) policy is useful to 'push' the economy in a certain direction, but not necessarily 'fine-tune it' to a particular outcome. They argue that if ( fiscal, monetary ) policy is keeping the economy relatively stable, ( fiscal, monetary ) policy should remain fairly neutral. In cases where recessions are deep and long-lasting or inflation threatens to rapidly rise, major adjustments in ( fiscal, monetary ) policy may be helpful to stabilize the economy. Economists do warn that the long-term effects of short-term applications of fiscal policy should be considered to ensure…
Which of the following is NOT a component of federal fiscal policy? A. Federal tax revenues B. Federal government expenditures C. Federal budget deficit D. All of the above are components of federal fiscal policy
How would a tax cut impact the National Budget and the National Debt? What are the pros and cons of running a deficit? Would you support such a tax cut and for whom should we impose the tax cut?
Which of the following Government agents are responsible for carrying out Fiscal Policy? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. a The Federal Reserve b Тахpayers C Firms d The Congress and President.
What is the role of the Council Economic Advisers (CEA) as it relates to the effectiveness of the recent U.S. fiscal policy? Find the names and university affiliations of the present members of the CEA. (This may be a helpful website for finding sum of the information relating to the question. https://www.whitehouse.gov/cea/staff)
Fiscal PolicyHow can fiscal policy create jobs?